The Linkages between Preferential Trade Agreements and Inclusive Trade

Transcription

1 The Linkages between Preferential Trade Agreements and Inclusive Trade Lessons from Asia and the Pacific Dr. Mia Mikic Director Trade, Investment and Innovation Division Economic and Social Commission for Asia and the Pacific

2 Overview Enhancing the capacity of developing countries in negotiating PTAs and formulating policies to deliver more inclusive outcomes Pilot countries in Asia and the Pacific: Bangladesh Islamic Republic of Iran Mongolia Myanmar Viet Nam 2

3 Modalities Research Country studies as case studies Analysis of contents and impacts of PTAs (including through APTIR work) Training, capacity building and dialogues National capacity building workshops Regional and global dialogues Knowledge products Training materials converted into online training Handbooks Trade Indicators Repository (look forward to the end of the day!)

4 Research Background Papers Labour Provisions in Asia-Pacific Trade Agreements Preferential Trade Agreements with labour provisions and labour market outcomes: evidence from Asia and the Pacific Mapping PTAs and impacts Country studies on economic and social impacts of trade liberalization Bangladesh Mongolia Myanmar Viet Nam Economy s resilience to shocks, including trade liberalization CGE study of how different types of PTAs (scope and size) affect the results Available online at

5 Identified linkages - Bangladesh Study focused on ready-made garments and leather goods sectors: Bangladesh has benefited from preferences given by developed markets, while PTAs such as SAFTA and APTA have brought down production costs through import liberalisation These factors have helped the expansion of the two sectors Interviews have suggested that employment of female workers have contributed to changing social norms, providing more opportunities for women and increasing their independence Work conditions however remain a concern; low wages, long hours, unsafe working conditions, and freedom of association are commonly cited

6 Identified linkages - Myanmar Local researchers focused on the garment industry The textile industry accounts for nearly 30% of FDI coming into the country and employs over 300,000 workers (80% women) Provides relatively stable (but low) income to an ethnically diverse workforce However, work conditions are harsh, with many costs deducted from their salary Freedom of association remains a long-standing problem

7 Identified linkages - Mongolia Study focused on the benefits Mongolia has seen from exports from extractive industries, and textiles (particularly cashmere) Mongolia has only relatively recently acceded to the WTO, and signed their first agreement Mongolia has however benefited from GSP in gaining access to markets in the US, EU and Japan, particularly for textiles exports These exports have benefited not only the textiles processing industry, but also the 300,000 herders which make up one fourth of the labour force in the country, boosting incomes and living standards, ultimately leading to large reductions in poverty However, Mongolia still faces many structural challenges due to geographical factors, and recognises the need to diversify from extractive industries

8 Identified linkages Viet Nam Study focused on garments and electronics industry: FDI has driven growth in both industries, though value-added remains low; newly signed PTAs, however, have benefited these industry through lowers tariffs Majority of workers in both industries are women (77% in textiles, 69% in electronics) While these two FDI-backed industries have generated more employment, and in the case of the electronics industry provided relatively higher wages, concerns remain Many factories report violations of health and safety, payment violations, working hour violations Viet Nam, however, sees newly signed PTAs as opportunities for introducing and enforcing new regulations, and increasing domestic competition

9 Training and dialogues National Regional (technical and consultative) workshops Global dialogues sharing lessons and enabled identification of common as well as specific issues

10 What we have learned The country studies have shown that the social impacts from these agreements are real, tangible, and measurable This is especially true for improving gender outcomes While the gains from trade have been well-documented, much more work still needs to be done to identify and help losers from trade-related changes Governments in particular need capacity-related assistance in identifying and implementing necessary policies

11 Knowledge Products Selected handbooks Analytical Approaches to Evaluating Preferential Trade Agreements Handbook on Negotiating Development Oriented Intellectual Property Provisions in Trade and Investment Agreements Handbook on Negotiating Sustainable Development Provisions in Preferential Trade Agreements in Asia and the Pacific(coming soon) Available online at

12 Ensuring sustainability of the project One of the main goals of the project is to enhance the capacity of developing countries to make better policies to achieve more inclusive and sustainable outcomes Linking the project with the experts of the Asia-Pacific Research and Training Network on Trade (ARTNeT) Developing a repository of Indicators of Inclusive Trade

13 Thank you artnet.unescap.org